After a rapid increase since the beginning of the year, the Bitcoin price is finally showing a clear trend direction. The recent bullish close turned the tables on the entire cryptocurrency space as the cryptocurrency concluded weekly trading at price levels not seen in over 700 days. As demand increases significantly and technicals turn in favor of the bulls, the price is expected to trigger a strong increase and set new annual highs soon.
Markets have turned bullish ahead of the halving, which can be seen as a major catalyst for the upcoming bull run. Additionally, the recent upswing has brought with it huge demand, and spot buying has also provided a decent boost. Therefore, one can likely expect a rejection that could lead to a decline below $48,000. However, this decline could be a great opportunity for accumulation as the price has signaled a huge bullish indicator.
After the huge parabolic rise, BTC price has reached the crucial resistance zone and closed the previous week's trading with a huge uptrend. With the price facing some upward pressure, bulls are expected to remain passive for a while. This could ultimately easily pull the levels towards the lower support of the resistance zone located near $47,000. The main reason for a somewhat bearish attitude towards Bitcoin is the RSI, which has been in oversold territory for a long time.
These values remained within this range for over a few months in 2020, just before the start of the 2021 bull market. Therefore, the current trading structure, which again resembles the previous pattern, raises hopes of a bullish breakout in the near future. However, volume has always been a major concern, but the bulls appear to be reaching a new ATH soon. Additionally, with its recent rally, Bitcoin is one step behind becoming a “trillion-dollar” asset.
So, if BTC price clears the current resistance zone, a nice recovery could follow, initially taking the token above $50,000, followed by a hunt for a new ATH in the coming days.
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